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Mizuho Bank and IBM test blockchain for international letters of credit

by
saramago

The Japanese financial group Mizuho Financial Group, considered by The Wall Street Journal as one of the most active banks in the world, has partnered with IBM Japan to build a distributed ledger platform to streamline business operations, specifically for the exchange of letters of credit with foreign clients.

According to the press release published by Mizuho, ​​the main objective of the construction of the platform is to determine through a pilot test how beneficial it is to the banking company to implement a blockchain for the simplification and security of the exchange of digitized letters of credit for international commercial transactions, as well as the numerous documents associated with the issuance of the letter.

It is important to note that this protocol will be supported on the blockchain platform of the technology giant IBM, called Fabric, which was one of the first projects incubated by the Hyperledger Project.

With this partnership with IBM, the colossal Japanese bank aims to reduce the amount of time and paper invested in distributing information among importers, exporters and their respective banks, making it one of the most useful features of the blockchain: immediacy - it has inspired whole countries to adopt distributed ledger technology as the modus operandi of their public networks; Reduction in inputs that would decrease the costs of processing commercial transactions.

The potential of blockchain technology has taken a position in the financial industry for a little more than a year on a massive scale, as the opportunity to reduce risks and costs can not be overlooked. And this is a vision that IBM has made clear since it decided to start innovating in the area of ​​blockchain services.